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CFTC to Allow Stablecoins as Collateral in Derivatives Markets

Wednesday, 24/09/2025 | 04:29 GMT by Arnab Shome
  • The initiative will cover all tokenised collateral, including stablecoins.
  • “These market improvements will unleash US economic growth,” Acting Chair Pham.
The CFTC office building in Washington DC

The Commodity Futures Trading Commission (CFTC) is set to launch an initiative to allow the use of tokenised collateral, including stablecoins, in derivatives markets. The agency’s Acting Chair, Caroline Pham, announced this yesterday (Tuesday).

Digital assets meet tradfi in London at the FMLS25.

CFTC Sprinting on Crypto

The decision came as part of the regulatory agency’s “crypto sprint” to implement the recommendations of the Working Group on Digital Asset Markets, appointed by US President Donald Trump.

It also followed US lawmakers’ approval of the Genius Act, which sets a framework to define and oversee stablecoin issuers.

Caroline D. Pham, Acting Chairman, CFTC, Source: LinekdIn
Caroline D. Pham, Acting Chairman, CFTC, Source: LinekdIn

“At our historic Crypto CEO Forum, we discussed how innovation and blockchain technology will drive progress in derivatives markets, especially for modernising collateral management and increasing capital efficiency,” Pham said.

“These market improvements will unleash US economic growth because market participants can put their dollars to work smarter and go further.”

Earlier, the CFTC and the SEC issued a joint statement, ending the long-running tussle between the two agencies over oversight of crypto.

The latest decision was welcomed by many crypto industry heavyweights, including executives from Coinbase, Crypto.com, Ripple and Tether.

Pham’s statement also hinted at the future of tokenisation in the US. “The public has spoken: tokenised markets are here, and they are the future,” she said. “For years I have said that collateral management is the ‘killer app’ for stablecoins in markets.”

CFTC Is Opening Up Regulations

The CFTC is also exploring whether to allow the European Union’s MiCA-authorised crypto platforms to operate in the American markets. The agency additionally wants to permit trading of “spot crypto asset contracts” on registered futures exchanges in the country.

Earlier in April, the CFTC began receiving public comments on proposals to allow round-the-clock derivatives trading and input on perpetual futures offerings. Interestingly, the SEC is also exploring the possibility of round-the-clock trading and has even permitted 24 Exchange to offer trading 23 hours a day, five days a week.

Read more on CFTC:

The Commodity Futures Trading Commission (CFTC) is set to launch an initiative to allow the use of tokenised collateral, including stablecoins, in derivatives markets. The agency’s Acting Chair, Caroline Pham, announced this yesterday (Tuesday).

Digital assets meet tradfi in London at the FMLS25.

CFTC Sprinting on Crypto

The decision came as part of the regulatory agency’s “crypto sprint” to implement the recommendations of the Working Group on Digital Asset Markets, appointed by US President Donald Trump.

It also followed US lawmakers’ approval of the Genius Act, which sets a framework to define and oversee stablecoin issuers.

Caroline D. Pham, Acting Chairman, CFTC, Source: LinekdIn
Caroline D. Pham, Acting Chairman, CFTC, Source: LinekdIn

“At our historic Crypto CEO Forum, we discussed how innovation and blockchain technology will drive progress in derivatives markets, especially for modernising collateral management and increasing capital efficiency,” Pham said.

“These market improvements will unleash US economic growth because market participants can put their dollars to work smarter and go further.”

Earlier, the CFTC and the SEC issued a joint statement, ending the long-running tussle between the two agencies over oversight of crypto.

The latest decision was welcomed by many crypto industry heavyweights, including executives from Coinbase, Crypto.com, Ripple and Tether.

Pham’s statement also hinted at the future of tokenisation in the US. “The public has spoken: tokenised markets are here, and they are the future,” she said. “For years I have said that collateral management is the ‘killer app’ for stablecoins in markets.”

CFTC Is Opening Up Regulations

The CFTC is also exploring whether to allow the European Union’s MiCA-authorised crypto platforms to operate in the American markets. The agency additionally wants to permit trading of “spot crypto asset contracts” on registered futures exchanges in the country.

Earlier in April, the CFTC began receiving public comments on proposals to allow round-the-clock derivatives trading and input on perpetual futures offerings. Interestingly, the SEC is also exploring the possibility of round-the-clock trading and has even permitted 24 Exchange to offer trading 23 hours a day, five days a week.

Read more on CFTC:

About the Author: Arnab Shome
Arnab Shome
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Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.

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